LACMTA said the contract approval was a key step forward for one of the cornerstone projects to be funded in part by Measure R, the half-cent sales tax increase approved by Los Angeles County voters in 2008. A $1.25-billion federal New Starts grant is also paying for the project.

The extension will push the subway from its current terminus at Wilshire Boulevard and Western Avenue to Wilshire and La Cienega Boulevard in Beverly Hills. Three new stations will be constructed at Wilshire/La Brea, Wilshire/Fairfax and Wilshire/La Cienega.

Three firms bid on the contract. Proposals were evaluated based on project management, technical approach and price.

Staff noted that while the STS bid was the most expensive bid by almost $193 million, they also believe "this team offers best opportunity to deliver the project on time and on budget," a promise reiterated by the winning bidder's future project manager. The companies involved have also worked on the second phase of the Expo Line, the Gold Line Foothill Extension and the city of Los Angeles' North East Interceptor Sewer tunnel.